Case Analysis – North Mountain Nursery
IIM Trichy – PGCBF Batch 2
Course : Financial Reporting & Analysis
Professor : V. Gopal
Submitted by : GROUP 14
DATE : 12 FEB 2023
Anagha Bhope - PGCBF02004
Ankita Choudhary - PGCBF02006
Battula Santosh - PGCBF02011
Kishore Kumar Vellore - PGCBF02024
Nirenjan Chandrashekar - PGCBF02039
Ramkumar V - PGCBO02049
Introduction:
John Powers was offered job as Chief Finance Officer by Tim Dunton who was the
owner of North Mountain Nursery. Powers decided to review the company’s financial
documents and for his surprise he could not find cash flow statement. Based on his earlier
conversation with Dunton and using the balance sheet and the income statement powers
decided to create the cash flow statement.
Cash Flow Statement for the year 2006
CASH FLOW FROM OPERATING ACTIVITITES
Net Income
Adjustmenets for:
Depreciation
$106,300.00
Operating cash flow before working capital changes
Accounts receivable (inc/ dec)
Inventory (Inc/ Dec)
Accounts payable (inc/ Dec)
Utilities payable (inc/ Dec)
Salary and wages payable (inc/ Dec)
Cash generated from operations
Income taxes paid
Cash flow from operating activites
$126,300.00
-$45,000.00
-$15,300.00
$20,000.00
-$750.00
$250.00
$85,500.00
$150.00
$85,650.00
CASH FLOW FROM INVESTING ACVITIES
Sale of machinery
Investment in new machinery
Cash flow from investing activites
$25,000.00
-$75,000.00
-$50,000.00
$20,000.00
CASH FLOW FROM FINANCING ACTITIVIES
Long term loans (taken/ repaid)
Dividends paid
Cash flow from financing activities
-$18,000.00
-$20,000.00
-$38,000.00
Net cash flow
-$2,350.00
Openeing cash and cash equivalents
Closing cash and cash equivalents
Net change in cash position
$47,950.00
$45,600.00
-$2,350.00